As Toyota prepares for its earnings report, the company anticipates a significant downturn due to ambitious plans to sell 1.5 million electric vehicles (EVs) by 2026.
Despite a concerted effort, Toyota fell short of its ambitious goal to market 1.5 million electric vehicles (EVs) by 2026.
Although Toyota sold more than 10.2 million vehicles globally, along with its Lexus brand, only about 145,000 were fully electric models during the fiscal year.
Despite being a mere 1%, this revenue still accounts for an insignificant fraction of the company’s overall gross sales. By 2024, approximately 14 per cent of global car sales were comprised of electric vehicles.
In a report released in September, it was alleged that Toyota informed its suppliers of a significant reduction in electric vehicle (EV) production plans, with a 20% decrease expected from 1.5 million to 1 million units by 2026. The newly unveiled plans involve the production of 400,000 electric vehicles (EVs) in the current year and a milestone of one million units by 2026.
Following the release of Toyota’s fiscal year financial results for 2025, company President Koji Sato and Executive Vice President Yoichi Miyazaki held a press conference to discuss the impact of new US auto tariffs and electric vehicle sales?
When asked if the corporation would reconsider its international gross sales target of 1.5 million electric vehicles (EVs) per year by 2026, Sato indicated that the company is “starting to see precise demand for EVs in every region,” adding, “We will be reviewing our figures.”
While Toyota’s commitment to electric vehicles (EVs) has been met with varying degrees of enthusiasm, it’s undeniable that the automaker has taken a more measured approach in embracing this technology.
Despite this, the Japanese automotive giant has unveiled numerous new electric vehicles and accompanying technologies aimed at helping it regain momentum over the past few months.
By 2027, Toyota aims to debut a fleet of ten new electric vehicles (EVs) across its key global markets. In Europe, Toyota unveiled two innovative electric SUVs: the City Cruiser and C-HR+. The vehicles are designed to integrate seamlessly into the company’s ambitious bZ4X lineup.
Next year, Toyota will begin building its inaugural three-row electric SUV for the US market at facilities in Kentucky and Indiana. In April, Toyota commenced delivering batteries from its North Carolina facility, marking the automaker’s first in-house battery plant outside of Japan.
Toyota debuted its most affordable electric vehicle in China, the bZ3X, with a starting price of just under $16,000 (109,800 yuan) in March. By 2026’s midpoint, Toyota’s bZ7 flagship model and Lexus’ ES will debut in China, poised to reclaim market share in the world’s largest electric vehicle (EV) market.
In early 2022, the Toyota bZ4X emerged as Norway’s best-selling electric vehicle, solidifying its position as the leading player in the country’s thriving market for eco-friendly automobiles. Can Toyota turn things around and stay competitive with BYD and other EV leaders amidst the influx of new electric vehicles (EVs)?
Unless the corporation reassesses its approach to setting and achieving sales goals, it’s difficult to envision a different outcome. Meanwhile, Chinese automaker BYD and its peers are aggressively expanding their presence in foreign markets.
